Lending to fund development of socioeconomic infrastructure.
Minister of Planning and Investment Bui Quang Vinh, on behalf of the Vietnamese Government, and Ambassador of Japan to Vietnam, H.E. Hiroshi Fukada, on behalf of the Japanese Government, signed a diplomatic note on January 15 regarding Japan providing its first ODA loan in fiscal year 2015, of $813.3 million.
The loan will be used to support Vietnam to develop socioeconomic infrastructure, creating the conditions for it to further attract foreign investment and integrate globally.
Projects where the funds will be used include the Da Nang - Quang Ngai section of the North-South Expressway, the Hai Phong international gateway port, and a program supporting efforts to cope with climate change.
Minister Vinh told the signing ceremony said that after ODA fell to less than $854.7 million in fiscal year 2014 the two governments agreed to raise commitments to a maximum of $2.56 billion during fiscal year 2015, of which over $800 million will come in the first stage.
Ambassador Fukada said that Japan’s fiscal 2015 started from April 1, 2015 and will come to an end on March 31. Besides this ODA package there will be three projects signed before the end of March.
As a major partner of Vietnam, the Japanese Government hopes it will effectively use the ODA funds to accelerate the completion of infrastructure, conduct human resources training, and develop domestic industrial production.
Since the resumption of ODA support to Vietnam in 1992, Japan has continually been the country’s largest donor, with commitments reaching approximately $22.2 billion.